US equities climbed 1.7% as risk-on sentiment returned, even amid elevated volatility.1 Optimism was driven by signs of progress in US–China trade talks and a strong start to the Q3 earnings season, led by major banks. Wells Fargo, Bank of America, and Morgan Stanley all reported results that exceeded expectations, easing investor concerns following recent weakness among regional lenders.2 Semiconductor and artificial intelligence stocks also advanced after ASML’s upbeat earnings, which propelled its shares more than 7% higher for the week.3
US equities posted a strong week of gains, rising 1.9% despite the ongoing US government funding shutdown and persistent US–China trade tensions.1 Much of the advance came on Friday after the BLS released CPI data showing inflation had continued to cool, reinforcing confidence that the Fed will cut rates this week. Still, investor conviction remained muted ahead of several key catalysts, including the upcoming meeting between Presidents Trump and Xi on October 31 and a cluster of mega-cap tech earnings.
Australian equities ended the week broadly flat as investors found little direction amid a lull in economic data and corporate earnings. While RBA Governor Michele Bullock spoke during the week, her remarks offered limited insight on monetary policy, focusing instead on the role of physical cash in the economy.2 Energy stocks were a bright spot, lifted by a rise in crude oil prices following US threats to expand sanctions on Russia, while materials and healthcare sectors lagged.3
Chinese tech firms (DRGN) led performance last week, buoyed by optimism following the conclusion of China’s Fourth Plenum.4 Officials reaffirmed that technological advancement would remain a central pillar of the nation’s next Five-Year Plan, reinforcing policy support for the sector. Sentiment was further lifted as President Trump appeared to step back from plans to impose a 100% tariff on Chinese goods.
In the world of commodities:
- Gold (GOLD) experienced its largest one-day selloff in twelve years as investors took profits following the metals surge over the past month.5
- Physical tightness in the platinum (ETPMPT) market continued to push the metal higher. The metal’s 3-month lease rates remained above 13% annualised for the week, and London platinum prices (the global benchmark) continued to trade at a premium to New York futures.6
- Uranium & nuclear energy (ATOM) stocks surged after the Trump administration moved to “accelerate AI power hookups”, a move that is expected to benefit nuclear power deals such as the Talen-Amazon proposal made earlier this year.7
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